Larsen and Toubro announces Rs 5,029.8 cr open offer for Mindtree at Rs 980 per share

The open offer price by L&T is higher than Mindtree's closing price of Rs 970.45 at BSE on Friday

Press Trust of India June 07, 2019 16:52:29 IST
Larsen and Toubro announces Rs 5,029.8 cr open offer for Mindtree at Rs 980 per share
  • The tendering for open offer will commence on 17 June and close on 28 June

  • In March, L&T had mounted a hostile takeover bid on Mindtree when it entered into a deal to buy VG Siddhartha's 20.32 percent stake

  • In all, the infrastructure major is eyeing up to 66 percent stake in Mindtree for around Rs 10,800 crore

New Delhi: Infrastructure major Larsen and Toubro on Friday announced an open offer for 5.13 crore shares or 31 percent stake of mid-tier IT company Mindtree at Rs 980 per share, according to a regulatory filing.

L&T will have to shell out Rs 5,029.8 crore for the planned open offer for the Bengaluru-based company.

Larsen and Toubro announces Rs 50298 cr open offer for Mindtree at Rs 980 per share

Representational image. Reuters

"Larsen and Toubro makes a cash offer of Rs 980 per fully paid up equity share of the face value of Rs 10 each, to acquire up to 5,13,25,371 equity shares representing 31 percent of the voting share capital...to the shareholders of Mindtree Ltd," said the letter of offer communicated to the BSE by Mindtree Ltd.

The open offer price is higher than Mindtree's closing price of Rs 970.45 at BSE on Friday.

The tendering for open offer will commence on 17 June and close on 28 June.

In March, L&T had mounted a hostile takeover bid on Mindtree when it entered into a deal to buy Cafe Coffee Day owner VG Siddhartha's 20.32 percent stake in Mindtree and also placed an order with brokers to pick up another 15 percent of the company shares from the open market.

Subsequent to these deals, L&T is required to make an open offer to buy an additional stake. In all, the infrastructure major is eyeing up to 66 percent stake in Mindtree for around Rs 10,800 crore. As of 6 June, its holding in Mindtree stood at 28.90 percent.

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